Strategic Planning and Marketing of Wood Product Timber

Question: Discuss about theStrategic Planning and Marketing of Wood Product for Timber. Answer: Introduction to Wood Products Manufacturing Process Overview: Timber is utilized for many purposes. The framing process of the timber goes through a grading process for verifying the stiffness and strength. By analyzing the manufacturing process, it can be assessed that two process including machine stress grading and visual stress grading facilitate in produce the framed gauged timber. Firstly, the machine stress grading facilitates the organization to frame the wood through the machine. In this particular process, each timber goes through a machine for measuring the stiffness. On the other hand, the smaller saw millers, who visually grade the timber as per the strict criteria laid out in the building code, often utilize the visual stress grading. By utilizing the both process, the manufacturer check the quality of the timber on a regular basis. In the New Zealand market, most of the wooden organizations utilize the G6, G8 and G10 graded timber, as these particular timbers provides high strengths to the wooden products (Findlay, 2013). Characteristics/ Specification, Advantages Over the past few years, most of the organizations in New Zealand have been focusing on manufacturing the wooden products due to the enhanced demand in the market. by analyzing the characteristics of the gauged timber, it can be assessed that the particular timber is exceptionally strong compared to its weight. On the other hand, the gauged timber is a good heat and electrical insulator. Besides these characteristics, the particular timber is renewable and biodegradable resources, which is eco-friendly (Schwenk et al., 2012). Gauged timber has several advantages including strengthens in the construction product. It has been seen that wood carries several beneficial aspects in the construction project. Gauged timber facilitates in resisting the high temperature in an efficient manner. With the utilization of this particular timber, the customer would obtain electrical insulator. The products manufactured by the gauged timber are very strong relatively to its weight. Consequently, it can be carried in an easy manner. Domestic Production Volumes and Trends The wooden product including gauged timber has been facilitating New Zealand in enhancing the economic strengths in an efficient manner. The forestry and the wood industry of New Zealand is the third largest industry, which has been contributing enormous amount to its domestic economy. For instance, the particular industry makes 12% of its total exports earning. By analyzing the annual report of New Zealand timber association federation, it can be identified that sawmills produce nearly 4 million cubic metrics of timber annually. Moreover, the domestic users are utilizing 7.5 million tones of logs annually (Duncker et al., 2012). On the other hand, more than the half of the production is exported to the global markets. Hence, the particular country has been the largest exporter in the foreign markets including china, Australia, and USA. Besides this, the New Zealand has made the strong presence throughout Middle East, Asia, Europe and the pacific. Main New Zealand Suppliers Over the past few years, New Zealand has been performing extraordinary in producing the timbers. Due to the enhanced demand of the customers, most sawmills have enhanced the manufacturing process in an efficient manner. By analyzing the recent report, it can be assessed that the country has 29 sawmills, who have been supplying the timbers to the organizations. The active sawmills or the timber suppliers are Colville Sawmill, Craig pine Mill, Cypress Sawmills, Eurocell sawmills etc. gradually, the number of the suppliers is increasing in an efficient manner, as the New Zealand timber is an outstanding construction material with the unrivalled ecological credential (Clawson, 2016). The particular suppliers have also been involved in the export business. The revenues from the export are up to $1 billion each year, which is splendid achievement of the country. Evaluation and Critique of the Domestic Market Marketing Mix: By analyzing the marketing mix, the suppliers have been utilizing the 4p marketing mix process in order to enhance the sales revenues in an efficient manner. Firstly, the products of the company are several timber products including gauged timber. The particular timber has been facilitating the customers obtain the strong source of framing in a lightweight. Besides this, the organizations in New Zealand have been focusing on bringing the diversification in the product segment. Besides the product, price is also an important factor of the business. Most of the timber manufacturer has been trying to deliver the product to the organization in less marginal profit, so that the organization could sale those products to the customers without charging high amount of money. Promotions are another part of the marketing mix strategies (Roshetko et al., 2013). Over the past few years, the timber organizations have been promoting their products efficiently to the domestic market as well as in th e international platform. When it comes to identify the fourth part of the marketing mix strategy, we need to highlight the importance of the place in the timber business. For executing the timber business, the suppliers need to identify the forest areas so that a huge amount of wood can be accumulated. Key Marketing Strategies: For obtaining the competitive advantages, the timber organizations in New Zealand need to follow some strategies. Firstly, the organizations should focus on selling timber in a fair, open and transparent manner. The organizations must identify the business objectives before implement the strategic approaches in the business. In a competitive market, the organization needs to avoid the aggressive pricing strategy for reducing the customers disengagement (Findlay, 2013). With the involvement of the marketing analysis, the company would be able to identify the key development areas in the business. However, the timber organizations need to include their investment cost into the pricing. For instances, the organizations must include the harvesting cost to processing cost into the pricing of the products. Besides these, the key strategies of the business must include the enhancement of the supply chain management. Without improving the supply chain of the business, the organization would not be able to experience the high sales revenues within the targeted timeline. Strengths and Weakness of the Domestic Market The prime strength of the domestic market is that the population of the country is low, which influence the most of the timber organizations in deforesting. Besides this, the particular country has the decent soil, which facilitates in growing the forest in an efficient manner. Hence, it can be considered that the domestic sawmills obtain adequate source of product for framing and sizing. On the other hand, the country generates 60% of its total electricity from the renewable energy. Consequently, it increases the utilization of the timber in the domestic market. By discussing the weakness of the New Zealand market, it can be assessed that the country has only 29 sawmills in the domestic region (Schwenk et al., 2012). For enhancing the export business, the local government needs to focus on facilitating the local sawmills in expanding their business across the domestic market so that it could easily enhance the export business within the short timeframe. Evaluation and Critique of the Global Market Global Production and Volumes and its Trends: By analyzing the global data, it can be evaluated that 695 timber companies have been executing their businesses across 43 counties. Total 1227 sawmills are there across the global platform. Total production of the timber is approximately 164 million m3/ year. According to the report published on 2014, USA had manufactured 54 million m3 (Duncker et al., 2012). Hence, New Zealand needs to focus on improving the business effectiveness for improving their position in the international market. Examples of Key International Competitors: The key international competitors of the country are USA, Canada and Russia (Findlay, 2013). By analysing the key international competitors, it can be assessed that the particular country needs to focus on the manufacturing process in order to enhance the business opportunities. Although New Zealand has been the third largest exporter of the timber across the global platform, they need to implement the strategic approaches into the business. Opportunities for the New Zealand Market The prime opportunity to New Zealand market is that most of the regions are covered by the forests. In 2006, it has been measured that total 1.8 million hectares with 89% in Pinus radiate and 5% of Douglas fir. Besides this, the long harvesting area In New Zealand was 18.8 million m3. Moreover, the new forests are 30 million m3 (Roshetko et al., 2013). Hence, it can be assessed that the particular country has high growth opportunities to the timber organizations to expand the business in the domestic market. On the other hand, over the past few years, the local government has decided to provide adequate contribution to the interested organization in expanding the timber business, as it facilitates in improving countrys national economic. Threats to the New Zealand Market: By analyzing the threats of the domestic market, it can be assessed that most of the countries have been enhancing the production of the timber for the last 10 years. Hence, the competition in the international market is open and it creates intricacies in retaining the growth of the industry across the global platform. By discussing the current global report, the top three timber producing countries are USA, India and China (Clawson, 2016). Hence, the domestic market of the country needs to be expanded largely in order to enhance t he business opportunities. Over the past few years, the USA has been the prime competitor of New Zealand in producing timber. Hence, the timber organizations need to take the strategic approaches in order to expand the business across the global market. References: Clawson, M. (2016).Decision making in timber production, harvest, and marketing. Routledge. Duncker, P. S., Raulund-Rasmussen, K., Gundersen, P., Katzensteiner, K., De Jong, J., Ravn, H. P., ... Spiecker, H. (2012). How forest management affects ecosystem services, including timber production and economic return: synergies and trade-offs.Ecology and Society,17(4), 50. Findlay, G. W. (Ed.). (2013).Preservation of timber in the tropics(Vol. 17). Springer Science Business Media. Roshetko, J. M., Rohadi, D., Perdana, A., Sabastian, G., Nuryartono, N., Pramono, A. A., ... Kusumowardhani, N. (2013). Teak agroforestry systems for livelihood enhancement, industrial timber production, and environmental rehabilitation.Forests, Trees and Livelihoods,22(4), 241-256. Schwenk, W. S., Donovan, T. M., Keeton, W. S., Nunery, J. S. (2012). Carbon storage, timber production, and biodiversity: comparing ecosystem services with multi?criteria decision analysis.Ecological Applications,22(5), 1612-1627.